818-371-2878 sales@mmjbankers.com

Overview of Cannabis Payment Processing Solutions

Cashless ATM // Traditional Pin Debit Card Processing // Credit Card Payment Processing w TEXT-TO-PAY

Card Brands Accepted

CASHLESS ATM – accepts Debit cards only
PIN DEBIT – accepts Debit cards only
TEXT-TO-PAY – accepts All Major Credit & Debit Cards plus ACH & Wires

Descriptor

CASHLESS ATM – your store name will be on the customers receipt
PIN DEBIT – your store name will be on the customers receipt – can be modified
TEXT-TO-PAY – your unique numeric descriptor will be on the receipt

The Process

CASHLESS ATM – customer swipes their card and enters their PIN number
PIN DEBIT – customer swipes their card and enters their PIN number

TEXT-TO-PAY – P2P transaction processing (similar to paypal or venmo)
Telephone orders are accepted – does not need to be face-to-face

Transaction Totals – Invoicing

CASHLESS ATM – the transaction will round up to the nearest $5.00 increment – the change is returned in cash
PIN DEBIT – the transaction will invoice to the exact amount – no change given
TEXT-TO-PAY – the transaction will invoice to the exact amount – no change given

Monthly Fee

CASHLESS ATM – $0.00
PIN DEBIT – $30.00
TEXT-TO-PAY – $199.00 and this includes a free Cannabis Checking Account

Transaction Fees

CASHLESS ATM – $2.50-$3.00 with a contract or $4.00 month-to-month. All fees are charged to the customer
PIN DEBIT – (3.50% – 4.00%) + $0.42 per transaction – A $3.00 convenience fee is standard to offset costs
TEXT-TO-PAY – Store pays 6.95% + 30 cents per transaction – less the portion shared with the customer

Equipment Costs

CASHLESS ATM – $300 – $425 in-store or $500 + $25 for wifi per terminal
PIN DEBIT – $290 standard or $430 for wifi
TEXT-TO-PAY – $0.00 – uses a virtual terminal (any internet connected device)

Funding Time

CASHLESS ATM – 2 day hold then paid daily
PIN DEBIT – batched before 6 pm PST is next day – after 6 pm PST is the day after that
TEXT-TO-PAY – deposits in real time – then pending for 5 business days

Reserves

CASHLESS ATM – no reserves
PIN DEBIT – no reserves
TEXT-TO-PAY – 10% rolling reserve for the first 90 days – it will then adjust to
0%-10% after the 90 day probation depending on your risk & charge back ratio

Banking

CASHLESS ATM – must have a business bank account
PIN DEBIT – A business checking account can be provided for $200 per month

TEXT-TO-PAY – comes with a FREE Cannabis Checking Account & debit card…FDIC insured

POS

CASHLESS ATM – compatible with any POS – integration is possible
PIN DEBIT – compatible with any POS – integration is possible
TEXT-TO-PAY – compatible with any POS – no integration

Charge Backs

CASHLESS ATM – none
PIN DEBIT – none
TEXT-TO-PAY – the company-wide average is 2 tenth’s of 1 percent.

Maximum Amount Allowed per Card

CASHLESS ATM – $800 per swipe – $1200 on an individual card within 24 hours
PIN DEBIT – up to whatever their current balance is
TEXT-TO-PAY – $450 per transaction

Probation

CASHLESS ATM – no probation
PIN DEBIT – no probation
TEXT-TO-PAY – 90 day probation – then your overall risk & charge back ratio will be reviewed

Contract

CASHLESS ATM – month-to-month with no ETF or a contact with $0.00 to $100 per month ETF
PIN DEBIT – 3 years – the early termination fee (ETF) $500 for more than 12 months left on the agreement – $250 for less than 12 months left on the agreement
TEXT-TO-PAY – month-to-month & no early termination fee (ETF)

Conclusion

CASHLESS ATM – Debit – The funding time is faster than for credit (TEXT-TO-PAY) and there are no fees to the business except for the card readers.

PIN DEBIT – traditional debit card processing, fastest funding time, lowest rate, most common user experience. All fees may be passed on to the customer. And is convertible to credit when federally legal.

TEXT-TO-PAY – Credit/Debit – There will be more of an initial investment ($199 monthly fee + a 10% reserve) but provide a greater ROI over a debit only solution. The ability to take phone orders has many advantages, especially for curbside and delivery. There is no equipment cost and it comes with a FREE Cannabis Checking Account to the store and the customer. Must process 100k a month minimum after 90 days to stay on the program.

David Winsen
818-371-2878
sales@mmjbankers.com